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How much does car insurance go up after an accident?

Accidents, they just happen. In Malta, the number of reported traffic accidents during the third quarter in 2019 amounted to 4,187, an increase of 14.5% over the corresponding period in 2018.

* source - National Statistics Office of Malta

The million dollar question, is how much more expensive is your car insurance going to be, if you claimed at fault?

Well before you claim, here’s what you should know, as your premiums may increase significantly!

The increase a driver might expect to see on his/her insurance premiums after an at-fault accident varies by:

1. Location

2. Driving Record

3. Vehicle

4. Insurance Provider

5. Age

Every claim is different. A claim which involved bodily harm would cause an insurance premium to spike, typically due to the sensitivity and cost of such claim. Usually the spike will be well within the bracket of 10 - 15 %

A medium bumper-to-bumper for instance, wouldn't spike a premium so much higher mainly due to the nature of the incident and it not being so costly. Typically the spike would be 3 - 8 % Mind you, remember that there are deterrents for claiming.

Typically, these are:

1. No Claims Discount ( NCD )

2. Excess Fee Why are these deterrents you may ask? Having a good driving record is rewarded with a no claims discount, which is generally transferrable from once policy provider to another. Claiming would effectively remove or downgrade your NCD, and ultimately your car insurance won't be discounted as it was before. Most insurers actually offer an option higher insurance premium with a No Claims Discount protection which would protect the discount if you were to claim. The excess fee is the fee you would pay to claim. Say the incident is small and the damage in light would net a total of EUR 100. If the excess fee was EUR200, which it generally is around that figure, it would make no sense to claim as it would generally cost more and claiming in Malta is quite the tedious process as most people know. Are you looking to make a claim? Click Here -> CLAIM NOW Do you need a car insurance policy and would like a range of quotes for FREE? -> QUOTE

Drive Safe.

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